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06/12/13 11:40 AM

#5677 RE: sambeaux #5676

Because if I am loaning your company (via stock ownership) money, the stipulations of that loan will state that I will get paid off first in the event of any calamity. As the owner of the company you came to me for additional money. As the lender I need to make sure I am covered against loss if your plans with that loaned money do not go as you plan.